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Chakravarthi Rangarajan on Monetary Policy After Liberalization

Ideas of India

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The Consequences of the RBI's Fiscal Dominance

Fiscal dominance is more related to the way in which monetary policy is formulated than implemented. The monetary authority is handicapped if the government is dominant and has its way, he says. But changes will be required to restore autonomy with respect to monetary policy by restoring inflation-targeting regime," Raghuram Rajan adds.

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